5 home mortgage trends for late summer
Jumbo loans are easier to get
Since August 2008, jumbo mortgages have been expensive and lending standards have been restrictive. But jumbo fixed rates now have dropped three-quarters of a percentage point since the beginning of the year, and standards have been easing.
"Over the last six to eight weeks, a lot of the big banks have been getting back into jumbo lending," says Dan Green, loan officer for Waterstone Mortgage in Cincinnati. "Now you can make a 20 percent down payment and go jumbo."
For most of the last two years, fixed-rate jumbo loans have been rare. Instead, lenders have offered jumbos with adjustable rates, such as 5/1 ARMs. And lenders generally have required borrowers to make down payments of 25 percent or 30 percent, or to have that much equity in a refinance.
Now, Green says, more lenders are offering fixed-rate jumbos with 20 percent equity.